PAGE SEVEN
THE DETR011 JEWISH CHRONICLE
IN FINANCIAL DETROIT
Oo
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WEEKLY MARKET REVIEW
SUPREME COURT RULES UNITED STATES STEEL
STOCK DIVIDENDS NOT
Great Expansion in Physical and Fi- Furnished by Statistical Department Income Tax,
TAXABLE AS INCOME nancial Condition Since Organi-
of O'Hara, Ferries Co.
Time, Accounts
zation-Book Value of Com-
0
U
National bank protection for your
savings; the highest possible type of
service and co-operation on emitter.
clal accounts; and, If yea .; desire to
send money or to business overseas,
a world-wide connection that assures
satisfaction; these are just a few of
the advantages you gain by doing
business with this bank,
0
mon Far Above Present
(The following is furnished by the
Price.
statistical department of Otis and
Nei, York, On April 1 United
Company, Brokers, Majestic Building,
States
Stet}
ill
be
19 years old, hav-
Detroit).
0
ing start siness April 1, 1901.
With the ruling by the United
States Supreme Court that stock divi-
dends are not taxable as income, a
new factor has been injected into the
industrial field, the influence of which
it is difficult to gauge accurately at
0
the present moment. I'ossibilities of
o the widest scope are opened up by
the decision, for the application of the
0
verdict to the future policies of in-
dustrial companies is not to he dis-
covered at first glance. There is more
to result from the decision than the
Capital and Sur.
mere fact that stock dividends are not
plus $7,500.000.
to be taxed. The verdict, taken in
0
conjunction with the recently an-
0
I , nuanced decision dismissing the dis-
0
LI solution suit against the United
CI States Steel Corporation, revives the
11 day of consolidation, and by consoli-
dation it has been proved cost is
lessened and efficiency raised.
The reason for withholding stock
dividend
distributions until there was
O
gi a favorable decision is obvious. Since
n
it was held that a stock dividend was
0
0 only a subdivision of a stockholder's
M121BER FEDERAL MUM BAT{
interest in a company and not an in-
crease in his holdings it would have
worked serious hardship on large
holders of the securities of a com-
pany to have had to pay out part
0=0=0=030 0=
01710=10
of their principal in taxes to the Gov-
‘ eminent. It was, therefore, useless
to make such distributions which, on
an unfavorable decision by the Su-
preme Court, would actually have
lessened an investor's holding in the
Company.
Herewith is a list of sonic of the
larger companies whose large sur-
pluses present interesting possibilities
in the way of stock dividends.
U
0
U
U
filIST,OLD DETROIT
ATIONAL thiVli
Bonds
Bonds
Dansard-Hull-Bumpus Co.
Investment Bankers
47 Congress`St. W.
Detroit
Stocks
Stocks
ti
PACKARD COMMON
FEDERAL TRUCK
PRUDDEN WHEEL
REO MOTOR
TIMKEN-DETROIT AXLE
FORD OF CANADA
PAIGE MOTOR
that final decision in
suit has been handed
down,
ice to go ahead with de-
velopnit nt without fear of restraint.
What the United States Steel ac-
complished from the time it began
business to Dec. 31, 1919, can be
summarized as follows:
I t earned $1,708,329,819 available
for dividends, equal to $474.70'a share
on preferred.
There was available for the com-
mon after preferred dividends $238.20
a share.
After common dividends, a surplus
of $756,489,219, equal to $148.81 a
share on the common, remained.
Before arriving at balance avail-
able for dividends, Steel charged off
approximately $1,400.000,000 for de-
preciation, sinking funds and ordin-
ary repairs.
In 1844 years there was spent for
new construction and acquisitions
approximately $900,000,000.
Excess current assets over current
liabilities at close of last year (1919
estimated) was $575,000,000, a gain of
$437,000,000.
Total construction expenditures of
$900,000,000, and gain in working
capital of $575,000,000 totaled $1,475,-
000,000, equal to over $290 a share on
$508,302,500 common.
Depreciation, new construction and
increase in working capital totaled
$2,875,000.000, equal to about $566 a
share on the common, or nearly $1,-
424,000 000 in excess of total stock and
bonded debt of $1,451,229,769.
In new construction and increased
working capital Steel's total capitali-
American Car & Foundry, No. of shares, zation was more than turned over.
300,000; surplus per share, $104; total our.
From April I. 1901, to the close of
plus, 631,304„521. American Linseed, 167,500; 1918 Steel's ingot capacity had in-
463; 110,530479. American Locomotive, 250.
creased
from 9,425,000 to 22,300,000
000; 187; 321,841079. Arneri.an Sugar
Amerk tons, or 137%.
Mining. 450,000; $47; s21,9pa,13:1.
can Brake Shoe & Foundry, 46,000; 1211;
Blast furnace capacity increased
19,723,000: American Woolen, 200,000; $98; from 7,440,000 to 18,400,000 tons, or
119,724,623; American Tobacco, 402,000; 147%.
1110; 144,594,333. Baldwin Locomotive, 500,
Finished steel capacity grew from
000; 156; 111,332,160. Crucible Steel, 250,.
000;
135,325.593.
1153;
CubanAinerican 7,440,000 to 16,200,000 tons, or 110%.
Sugar, 99,695; $168; 116,828,166.
Wages paid increased front $120,-
E. I.
DuPont de Nemours, 550,542; $116; $68,300. 528,343 in 1901 to $452,663,524 in
091.
General
Electric,
1,182,824;
144; 191$, or 275%.
$52,250,661.
General
Chemical,
165,192;
Gross receipts increased from $560,-
9103; $17,117,906.
Goodrich, 600,000; $51;
930,619,987; Goodyear, 004,668; $101: $20,. 510,479 in 1901 to $1,744,312,163 in
717,2.51.
International Paper, 200,000; 595; 1918, or 211%.
219,104,764.
International Harvester, 800,
To accomplish this, one might say
000; $85; 165,036,663. Lackawanna, 350,970; United States Steel must have shown
$96: $33,771,260.
Liggett •M yers, 214,964:
a
corresponding
increase in preferred
667; 118,839,303.
Morris & Co., 30.000;
551,523,864;
National Enamel I dividend and interest charges and cap-
21,7 60 ;
Stamp, 15501; $45; 17,156,523.
National italization.
Biscuit. 292,960: 160; $17,761,783.
National
But, instead, total stock and bond-
Lead, 213,154: $71; 216,659,907. New York
ed debt at close of 1918 were $1,451,-
Air Brake, 100,000; $65; $059 5 .667.
Pitis•
burgh Coal, 321,692: $74; $03.520,052.
Hail. 229,769, a gain of only 18%.
More remarkable still, preferred
way Steel Spring, 135,000; $76; 910,362,051.
Republic Iron & Steel, 300,000: $113; $33,• dividend and interest obligations at
960,971. Standard Oil of Indiana. 300.000; close of 1918 were $55,941,217, an
$258; 587,50905. Standard Oil of Kansas,
20,000; $214; 54,095.3:o0. Standard Oil of actual decrease of 4.7% from 1902,
New York, 730.000;
1146; 1110,029034. the first full calendar year.
Standard Oil of Ohio, 70,0e0; $171, $ 1 2,302,.
The wonderful progress of United
181. Texas Company, 850,000: $70: $60,000,- States Steel, physically and finan-
406.
United States Steel, 5,099,023; 291; cially, was accomplished through
2466.889,421.
United Fruit, 508,163; $69;
$35,040,154. Vs. Cc Chemical, 279,944; $87; earnings alone.
There is no doubt that thousands of
$24,109,203.
Vacuum Oil, 150,000; $267;
940,134,239.
Wilson & Company, 200,000; investors have declined to place their
105; $19,789,230. DETROIT STOCKS - Fed- money in steel for fear that the cor-
eral Truck, 100000; 519,63; 11,883.863 55; poration would be forced to dissolve.
Packard, 1,1 9 4093; 11650; $19,091,494; Park
Now that it is no longer in danger of
Davis, 473,354; 214.20; 16,720830.
dissolution, the course of the stock
will be followed with interest.
worthy of your consideration.
We will also be pleased to execute
your orders in other stocks and mar-
kets at all times.
A. W. WALLACE & CO.
Members Detroit Stock Exchange
Penobscot Building
Cherry 2800
liti
th
Activity on the Detroit Stock Ex-
change has been constant, particu-
larly in those securities where stock
dividends are anticipated. Each of
these has advanced, and it is gener-
ally expected that, as the announce-
ment of the intentions of the direc-
tors of these companies regarding
stock dividends is made, such stocks
will be in strong demand.
The motors have been the favorites
on the local exchange during the past
week, principal among these being
Packard, Reo, Paige-Detroit, Ford of
Canada and Federal Truck, Gladys
Belle oil has also been the subject of
several transactions, while the sugars,
public utilities and other industrials
have received a goodly share of at-
tention from local investors,
its plant at 485 Baker street,
The shop is equipped with all mod-
ern machinery and tools. Mr. Cullen
already has several large contracts for
work to be done by the new shop. Ile
expects to specialize in building con-
tractor's work additional service for
which has been needed for some time
past.
A crew of expert workmen qualified
for all sorts of blackemithing work are
employed in the plant.
With the coming rush of building
operations due to begin as soon as the
winter breaks up, demand for work "f
this sort will lie extremely heavy.
Firms wishing to place orders :le urg-
ed 'o do so at once, If they desire
them to have prompt attention.
At a recent meeting of the Young
Judea Literary Club the following
officers were elected for the ensuing
term: President, Sant Cohen; Vice-
President, Sidney Berstowitz; Secre-
tary, bliss Anna Maxman; Treasurer,
Joe Steffan, and Sargeant-at-Arms,
Mr. Abraham Illondy. The commit-
tees for this term have already been
appointed and are working to make
it one of the most successful the or-
ganization has enjoyed.
At last week's meeting a resolu-
tion was adopted to conduct a can,-
paign for the purpose of creating new
Young Judea organizations whose
members should be at least 16 years
of age. There are many junior clubs
in the city, but the need- of older ones
is growing every day since the Young
Judea Literary Club is the only ore
in the city. During the ne,,xt four
weeks, the duration of the special
campaign, members of the Young
Judea Literary will address many
young Jewish organizations in an at-
tempt to interest and enroll them in
the work.
The purpose of this campaign is to
get together a large representative
body of Jewish young people who
will he enabled to work together for
the advancement of Zionistic teach-
ings and ideals.
The next regular meeting of the
Young Judea Literary Club will be
held Sunday, March 21, at the
Shaarey Zedek Synagogue at 2:30
p. ni.
London.-Lord Reading. who re-
cently refused the appointment of
British .1mbassador to the United
States, is now spoken of as the . future
British Ambassador to France. "The
Echo de Paris," in this connection
states that the appointment of Lord
Reading indicates that the Embassy
in I'aris is regarded as more impor-
taut than the one in Washington.
The Freedom of Reading was con-
(erred upon the Earl of Reading last
month in the Town Hall of that
borough. 'Elle mayor presided and
the American Ambassador was among
those present.
Tramtactions affecting deter-
mination of the Income 777,2,
and payment, final
review and determination of the
reporting
tarts by the gov rn Men t cover a
period of three years, or more.
During this time the only
of informa-
tion is the accounting record o f
the firm or individual.
Completeness. order and ac-
cu racy of accounts, best assured
through the services of the Cer-
tified Public Accountant, are t he
dependable source
only means of avoiding cost I y
errors and litigation.
Certified Public Accountants
Dime Bank Bldg. Cherry 271
Woolworth
Bldg.,
New
York
GOLDMAN & ULLIAN
CIVIL ENGINEERS
SURVEYS-Land Subdivielons, Muni-
cipal %al "nth.
STRUCTUR A I. DESK:NS-Plans, Es-
timates, Reports, Supervision.
225 Farwell Bldg.
Tel. Male 2043
Surveying within 24 hours.
What have you
accomplished?
---better start now!!
FIRS
STATE BANK
OF OCTFtosT
Established 1853
Lafayette and Griswold
Nine Convenient Branches
We Own
and Otter
MICHIGAN STATE TELEPHONE COMPANY
First Mortgage 5% Bonds
Dated February 1, 1904.
Due February 1, 1924
Principal and semi-annual interest payable in New York
Authorized, $10,000,000,
Outstanding, $9,715,000
These bonds are secured by a ling mortgage on the
entire property of the Michigan State Telephone Corn.
pany, representing an investment of over $40,000,000.
This Company serves the City of Detroit and other sub-
stantial territory in Michigan and Is controlled by the
American Telephone 6. Telegraph Company, whose l net
earnings for 1919 are
reported as
approximately
$45,000,000.
CULLEN INSTALLS
BLACKSMITH SHOP EARL READING SLATED
To supplement Its present service,
A. F. Cullen & Company has Installed FOR PARIS, IS RUMOR-
a blacksmith shop ss an addition to
IS SIGNALLY HONORED
YOUNG JUDEA LITERARY
CLUB ELECTS OFFICERS
E are specialists in the above-
W
named stocks and believe un-
dez existing conditions that they are
For
A tone of confidence prevails
among the financial and investing
circles at present. The highly favor-
able factors which have brought about
the turn in the market have not as
yet, it is believed, been given full
credence. Although the news from
Europe has been disquieting, its ef-
fect on local market conditions has
been negligible.
PRICE, 89 and interest, to yield 8.25`;,
Watling, Lerchen & Co.
2'
INVESTMENT BANKERS
Ground Floor, Peoples State Bank
Bldg., 56 Congress Street West
Telephone, Cadillac 2302
Detroit
Grand Rapids
,s
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1
MORGENTHAU PROTESTS
b
U. S. INDIFFERENCE TO
ARMENIAN MASSACRES
German Municipal Bonds
1-4
Quotations and Information Furnished
n
Cologne 4's
Dresden 4's
p. =
Hamburg 4's and 41/2's
a
Leipsic 41/4's Munich 4's P.
Philadelphia.-Henry Morgenthau, E.'
former United States ambassador to P.
Turkey, in an address at a mass meet-
C.
ing under the auspices of the near
PRIVATE TELFAMAPII WIRES TO ALL :MARKETS
east relief here today declared that 13
.
the Turk should be driven from Eur-
Main 5480
ope and urged the American people
802 Dime Bank Building B
to make a strong protest against the imulacmullunocumunum.agoomonolum.untsusummuommannutimuomumnuma
re4
outrages which he said have taken
place and continue in the,near east.
March
17th,
1920,
"The British and French politicians
UNSOLD ORDERS AT CLOSE OF BUSINESS ON WEDNESDAY
(or selfish purposes are arranging to
let the Turk remain in Constantin-
200 Auto Body, preferred
100 Michigan Smelting & Refining
ople," Mr. Morgenthau declared.
10 Bankers Trust
100 Northern Engineering, common
:15 Detroit & Cleveland Nay,
"If the Turk is not punished I ven-
100 Packard Motor
50 Detroit Mortgage, common
ture to prophecy that within three
100 Paige-Detroit, common
30 Federal Truck
years the Russians will massacre
15 Paige?Detrott, preferred
14 Ford of Omuta
3.000,000 Jews, for they will argue
100 Reo Motor Car
that public opinion did not protest
10 Timken•Detrolt Axle, Preferred.
against massacres of 1,000,000 by the
Turk.
"The United States is making itself
an accessory after the crime unless it
Members Detroit Stock Exchange
takes the stand that the Turk must
be punished. Congress should act to
Second
Floor,
Dime
Bank Bldg.
Cherry 829
help."
M. Deakin & Co.
•
O'Hara, Ferriss & Co.
NEW ORGANIZATION TO
OBSTRUCT JEWISH TRADE
WARSAW-"Dva Grosha" reports
that Polish merchants have founded
a new organization to oppose and
obstruct Jewish trade. Its special
work will be to send travelling in-
structors out to the small Polish
tradesmen in the provinces in order
to help these better to organize their
business and so to be able to compete
with the Jewish merchants.
OTIS & COMPANY
(Members of New York, Detroit, Cleveland, Chicago
Stock Exchange)
ORDERS EXECUTED IN MOTOR, RAILROAD AND INDUSTRIAL
STOCK ON ABOVE EXCHANGES
Second Floor Majestic Bldg.
CADILLAC 6502
g